Whynot - I don't think the current owner paid too much for it. They bought it for not so much money a while ago and the only debt they had on it was for the foundation work. I know they did owe much less than $2.5M on it. Not sure if that has changed though.

The fact that the present owner paid too much for it, is unrelated to how much it is worth today.

TO

"The fact that the present owner believes its worth $4.3M, is unrelated to the fact that bidders seem only willing to pay $2.5M for it. This property isn't going to move until he lowers his price, and him changing real estate agencies isn't going to make a difference."

Instead the problem being the ability to pay off a bank loan in full if the owner sold at $2.5M, the hold-up is just unrealistic expectations or just ______ (fill in the blank). That's my understanding at least.

What's upsetting is that the community has had to look at a hole for the past 4 years because of this.

To the owner's credit though, rents have gone up, making the site more valuable. Whether or not he benefits from this while still having to pay the interest on the construction loan, I have no idea.

1. Mr. Mazon believes it will again be 2008 if he just keeps repeating his asking price over and over to realtors .

2. Mr. Mazon's accountant has this property on the books at some unrealistically high number, however, this loss will remain "unrealized" until he actually sells it. If he sells it for less than book value, he has is unwilling to pay out the $ needed to make his books balance.

3. I suspect that he has a very low tax rate on the lot.

4. I suspect that he has paid off any construction loan he received for the foundation, and is still "licking his financial wounds" from the bill.

Yes, rents have continued to go up. But I hate the incentive of rooting for higher rents in order to The Hole filled.

Mega firm TerraCRG was the last one to be fired by Mr. Mazon. Does anyone have any bets on whether Pinnacle will soon be fired by Mr. Mazon because they aren't able find someone willing to pay his asking price?

Does anyone think a bigger sign would help snag the person who happens to walk by with around $4.3M to spend? I am pleased to report that I think buyers, sellers and realtors are more sophisticated than that.

$585/square foot? That's freaking amazing, we'll see what actually happens next. Don't love the way the rendering fits with the block and the 'hood but it sure beats a hole.

It's certainly way more than I've ever seen for a brown field in this neighborhood. We paid $144/square foot last year just a few blocks away -- a much smaller property, granted, and not on the corner above the subway station, but still.

whynot - you said it a long time ago. Roughly At $575 SF that would gross about $32M in Revenue. If they can build it for $16M + $8.2M price, that's $7.8M profit, or about a 32% return.

$32M is conservative. Here's the math.

They would have to sell the retail portion of the site to make it work like this, but that's possible.

Retail: 8,000 SF. Using $40 psf less 10% operating expenses.Then divided that amount by 6.5% (cap rate). Cap rates on a good credit tenants are probably in the 5.75% range which would generate more revenue to the seller. --> $4.5M

Condos: 48,000 SF to sell. At $575SF that's $26.5M.

Parking: 38 spots at $75k a pop. That's $2.85M.

Grand total of $35M in revenue. If they can pull it off with around $25M in costs, that's home run - 40% return. We'll see. This is Crown Heights in 2012! LOL.

Atop the ground-floor retail space will be seven more stories containing 63 residential units. Jacobowitz said Bluejay has not determined whether the units will be condominiums or rentals. But he said that the site’s location, along the growing Franklin Avenue retail corridor with a subway stop on the corner, would allow Bluejay to turn a profit either way.“It’s a fantastic site in a great neighborhood,” he said. “Franklin Avenue is already strong and its only getting better.”

He said the site has a foundation in place, a 421-a tax abatement and will include an 8,800-square-foot retail space “that has already drawn serious interest from banks and pharmacies.”

The top two floors of this eight story building should get some nice views of Manhattan. If they go condo, those apartments might fetch $800 per sq ft. 1200 sq ft would result in $960k

P.S. It looks like TerraCRG was the sellers agent, and Pinnacle represented the buyer.

BTW, here's an image that gives readers an idea of what the site looked like as it was being torn down in 2007. It is taken from an angle similar to the one above:

The thin, brick building in the photo fronted Eastern Parkway. In the early 2000s, it featured a fried chicken place and a beauty salon on the first floor, and the second floor was largely vacant.

As you looked at the site from Franklin Ave, there was a large one story building that was located to the left of the above building. It featured a Mazon Discount store which was similar to the existing Mazon locations.

...if anyone has a better shot, please post it. The contrast between the old site and the building that will be completed in 2014 should be interesting.

Regardless of whether they go condo or rental, the market is looking good for the developer:

Today a report from MNS looks only at new developments in Brooklyn. It’s a glittering picture, fueled by luxury waterfront developments. Total new-development sales dollar volume more than doubled in the second quarter versus the first quarter of 2012. Just four luxury projects — Edge, Northside Piers, One Brooklyn Bridge Park, and On Prospect Park — made up 45 percent of sales by dollar volume. Median price per square foot of sales at new condos increased 16 percent year over year, to $690. The most expensive neighborhood for new developments was Prospect Heights, where the median price per square foot rang in at more than $900 — presumably thanks almost entirely to On Prospect Park. Williamsburg and Brooklyn Heights followed at just under $850. The neighborhood most responsible for all the new-development sales activity was, naturally, Williamsburg, which accounted for 33 percent of new-development sales across the borough. Where can you find the cheapest new builds? Crown Heights, where the median square foot clocked in at just under $300.

curbed wrote: There will be 8-stories, 65 units (with a live-in super), a rooftop terrace, an outdoor space and recreation room on the second floor, and the ground floor will have retail space and a "ambulatory diagnostic or treatment healthcare facility." We're guessing that's the "community space" that CPEX is advertising.

How come? To be fair, I end up hating on most modern buildings that get put up because they're either hideous or straight out of context (check the building that's being put up on Rogers which is both.) I actually really like the way this building looks from the rendering. I hope when it's finished it's as nice as it looks there

Are you talking about the building on Rogers and Sterling, Epic? That's actually not a new construction, but a "major alteration" <sic>.

I don't think it's terrible for a rental. I've seen a lot worse, i.e. look at 590 Sterling Place, or 658 Classon. At least on Rogers they don't have exposed air conditioners and plenty of windows, and the architect (weakly) tried to break up the monotony of the flat roof line in a nod to the original building (which looked just like the ones to the right of it).

curbed wrote: CROWN HEIGHTS—A press person for 341 Eastern Parkway, at the corner of Franklin Avenue, confirmed that the under-construction building will feature 63 condos, and aptsandlofts.com will be handling the sales and marketing. The building will also have more than 8,000-square-feet of street-level retail. Still no word on pricing or when construction will be complete.

I was asking if anyone knows what the space is "going for" in terms of cost, not what type of business. I'm curious if the $12,500/month rent on Maiman's old place is close to what commercial space will cost in the new building, just accross EP.

"CROWN HEIGHTS—The 63-unit condo building going up at 341 Eastern Parkway has been a bit of a mystery. Last night, the developers were supposed to go before the local community board to gain support for their application for a 421-a tax abatement, but no one showed up. But the board did have a printed rendering of the building. However, it wasn't anything new. In fact, it was the old Gene Kaufman that we thought had been replaced. Does this mean it's back in the running? The actual building is currently just a steel frame."

There's more renderings, including some interior ones, on the above link

Here's their pitch:

This 70 unit new construction rental building is located on the prominent corner of Franklin Avenue and Eastern Parkway in Crown Heights, Brooklyn. Limestone and brick facades line Eastern Parkway alongside major buildings like the Brooklyn museum and the Grand Army Plaza Entrance. We recreated the grandeur of the turn of the century architecture but with today’s means and methods. The interiors are clean with transitional cabinetry and modern hardware and appliances. The bathrooms are stylish and functional with timeless character and contemporary features. Designed for the young professionals and the families of Brooklyn this building will become the newest landmark to be built on Eastern Parkway in the past century.

Note, unless they are simply using round numbers, the number of units has grown from 63 to 70.

Also of interest is how far they show the building as being set back from the street. This set back likely allowed them to build the additional two stories (8 stories, instead of the zoned 6).

whynot- to clarify, I'm talking about the only window currently installed in the building as of last Saturday. It's on the second floor on the southwest corner (facing EP). It seems cheap, very small and not like the other spaces framed out for windows. If this is a sign of things to come it is very concerning.

I don't think the pic 2 is actually supposed to be placed at the site. Note that the buildings on what should be EP are completely different as well. Whether the Bob and Betty thing happens, I don't think I'll live long enough to see the EP houses knocked down and rebuilt.

The expanse of sidewalk is actually one of the best possible parts of this new construction. If the building and sidewalk end up looking like the rendering, we're going to have one of the nicest corners on EP.

Either way, this is a HUGE win for the nabe, and I can't wait to see it come to fruition. I just hope the ground floor isn't going to be a dialysis clinic.

I'd call that expanse of sidewalk impossible. There is no way you get a 10+ foot setback of the building which is also in line with the yards of the homes on EP. Not unless the sidewalk is extended to completely block the service road. That second rendering may be a view of what the building is supposed to look like, but it's NOT in the proper context of the Frankin/EP corner.

The eight-story apartment building going in on the corner of Franklin and Eastern Parkway at 341 Eastern Parkway is up to the fifth floor now. Construction started in the fall, and is supposed to be completed by the third quarter this year. There are 64 units planned, plus retail

Condos are typically designed very differently than rentals - i.e. larger floor plans and higher end finishes. It is not typical for developers to go into a project without these plans finalized and a clear exit strategy for their construction loan.

I was walking by yesterday, and that big expanse of the sidewalk is realistic. The building lines up with the homes next door(not the front of their yards). It should be a really open space out front. Curious how they'll use it.

They could totally use that expanse of sidewalk for car parking just like the Chase Bank + medical building on the corner of Bedford and Eastern Parkway. Also, I think there's a church on Eastern Parkway where people do the same thing and park on the sidewalk.

Does anyone know if the parking in front of the Chase bank on EP/Bedford is legal? There are no curb cuts and drivers just pull in through the handicap pedestrian ramps on the sidewalk. I'm constantly dodging cars and drivers dirty looks while just trying to walk on that sidewalk.

I walked by this site this weekend (June 10, 2013), and it looks like they have the steel in place for the main 6 stories. The 7th story will be set back a little, and the 8th looks like it will just be those tower things.

The towers look like they will have some nice, "writers perch" 360 degree views.

Given that a few high floor condos went for over a $1M on Classon several years ago, and the real estate market has only gone up locally since then, it would not surprise me if they are able to fetch $750 a sq ft for the lower floors, and over $1000 for those prime, top units.

CURIOUS: DOES ANYONE KNOW IF THIS BUILDING IS ACTUALLY GOING TO BE CONDOS OR RENTALS?? I THOUGHT IT WAS SURE THAT IT WAS BEING BUILD TO BE SOLD AS CONDOS, BUT I JUST CHECKED THE DEVELOPERS' WEBSITE AT http://meshberggroup.com/project/341-eastern-parkway/ , AND IT SAYS IT WILL BE A RENTAL BUILDING, TARGETED FOR OPENING FALL 2013. ANYONE HAVE MORE INFO?? THANKS!

It's only just occurring to me how much more crowded the platform at Franklin is going to be with these 65 units, the 128 rental units on St. Marks, and the owners of Hello Living Sterling's 46 units switching to/from the 3.

Nov 11:A sit down restaurant is going to occupy part of the first floor, and will be accessed via Franklin Avenue.It will apply for an alcohol permit, and have a large bar.I have been told it will serve “American Food”, and that the owner has other locations.

Despite paying to build out some of the space, this restaurant entity is now no longer coming.A new tenant is being sought.